Transcription of LOW INCOME - GOV.UK
1 LOW INCOMEHow is it measured in Households Below Average INCOME ?1. The Family Resources Survey is carried out with a sampleof approximately 20,000 households around the UK4. The median household INCOME is used to find the numberof people in low- INCOME households6. confidence intervals show the uncertaintyaround the estimates2. INCOME data undergoes costs can be consideredQUESTIONSQ uestions on household characteristics, earnings, benefits and housing costs are asked in an allows comparisons to be made of individuals of different ages from different sized INCOMEThis includes benefits and earnings, and after tax selection of the overall population. 20,000 households give results we can be confident reflect the whole population without surveying everyone in the DEFINITIONS:LOW- INCOME THRESHOLD = 60% of MEDIAN BIG confidence INTERVAL = less precise estimateSMALL confidence INTERVAL = more precise estimateHOUSEHOLD One person living alone or a group of people (not necessarily related) living at the same address who share cooking facilities and share a living room, sitting room, or dining area.
2 A household will consist of one or more benefit household member is given a standard weighting which is summed togetherThe results from the 20,000 households around the UK are scaled up to represent UK resultsWeekly net INCOME before equivalisationWeekly net INCOME after equivalisationFA MILY o r BENEFIT UNITA single adult or a couple living as married and any dependent couple with no children is the reference has decreased as a couple with children need a higher INCOME to enjoy the same living has increased as a single person needs a lower INCOME to enjoy the same living + = 1 300 1 300 + + + = 300 214 300 448 BEFORE HOUSING COSTS (BHC)Housing costs ( rent and mortgage interest payments) have not been HOUSING COSTS (AHC)Housing costs ( rent and mortgage interest payments) have been INCOMEMEDIANHOUSEHOLD INCOMEHIGHESTHOUSEHOLD INCOME measures are producedINEQUALITY: It is important to measure inequality as it shows how INCOME is distributed across the population of the UKAs a sample of the population is used, estimates of household INCOME are produced.
3 As a result, there is uncertainty around these information can be found at: enquiries please contact the HBAI team at: confidence interval indicates the extent to which an estimate may differ from the true every household had an equal share of the total INCOME the Gini coefficient would be higher Gini coefficient indicates greater inequality (the maximum Gini coefficient is 100).The Gini coefficient measures inequality: the distribution of household INCOME across the population of the HIGHER THE NUMBER, THE GREATER THE INEQUALIT VS ABSOLUTE LOW INCOMER elative low INCOME : comparison to median of the current low INCOME : comparison to median of the 2010/11 year which allows comparisons over threshold for low INCOME is used for comparing sections of the INCOME distribution over NOT THE MEAN AVERAGE?Mean: sum of all incomes, divided by the number of people whose incomes were median INCOME is the amount which divides the INCOME distribution into two equal groups, half having INCOME above that amount, and half having INCOME below that unequal distributions, the mean is likely to be influenced by high values, so it does not reflect the experience of most individuals.
4 The median is not affected by a few very high BOUND: : 10%UPPER BOUND: LOWER BOUND: : 10%UPPER BOUND: adult adult 14 yrs and over under 14 yrs valu
